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Objectives

Designing a Sales Force Managing the Sales Force Principles of Personal Selling

2000 Prentice Hall

When might you decide to use Personal Selling?

Tight budget (straight commission) Concentrated Market Few buyers High value product Product must be customized Personal contact important Must demonstrate product Product involves trade-in/up

2000 Prentice Hall

Designing the Sales Force

Sales force objectives Sales force strategy Sales force structure Sales force size

Sales force compensation


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Sales Force Structures

Territorial

Product

Market
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Complexity

Workload Approach to Sales Force Size


Classify customers by size Determine desirable call frequencies Determine total sales calls needed per year Determine average number of sales calls per sales representative per year Divide total by number per rep

2000 Prentice Hall

Sales Force Compensation


Fixed Variable Expense Allowances Benefits

2000 Prentice Hall

Managing the Sales Force


Recruiting & selecting sales representatives Training sales representatives Supervising sales representatives Motivating sales representatives Evaluating sales representatives
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Time and Duty Analysis


Preparation

Administration

Travel

Selling
Waiting
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Food & Breaks

Sales Representative Motivation


Motivation Effort Performance Rewards

Satisfaction
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Evaluating Salespeople

Call Reports

Work Plan

Sources of Information
Annual Territory Marketing Plan
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Improving Sales Force Effectiveness

Training in sales techniques & professionalism Negotiation skills Relationship-building skills

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The Zone of Agreement


Zone of agreement
Sellers surplus Buyers surplus

s Sellers reservation price (seller wants s or more) Seller wants to move x to the right
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Final contract

b Buyers reservation price (buyer wants b or less)

Buyer wants to move x to the left

Performance Evaluation
Current-to-Past Customer Satisfaction Qualitative Evaluation

2000 Prentice Hall

Steps in the Selling Process


Step 1. Prospecting and Qualifying
Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.

Step 2. Pre-approach

Step 3. Approach

Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product Story to the Buyer, and Showing the Product Benefits.

Step 4. Presentation/ Demonstration


2000 Prentice Hall

Steps in the Selling Process


Step 5. Handling Objections
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.

Step 6. Closing

Asking the Customer for the Order.

Step 7. Follow-Up

Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.

2000 Prentice Hall

Alternative Steps:
Find em
Grab em Show em Answer em

Sell em Keep em
2000 Prentice Hall

Review
Designing a Sales Force Managing the Sales Force Principles of Personal Selling

2000 Prentice Hall

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